Figure 30-2

Multiple Choice

Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes.
-Refer to Figure 30-2.If the relevant money-demand curve is the one labeled MD₁,then the equilibrium value of money is

A) 0.5 and the equilibrium price level is 2.
B) 2 and the equilibrium price level is 0.5.
C) 0.5 and the equilibrium price level cannot be determined from the graph.
D) 2 and the equilibrium price level cannot be determined from the graph.